UNG charts

For those interested, today was the 10:30 EIA Natural Gas Report and Nat Gas for the 3rd week in a row sold off on a draw, except this week it sold off on a 160 bcf draw when consensus was a 157 bcf draw, for all practical purposes, that's in line, not a disappointment, but you'll notice just as we noticed UNG about 6 months before people started talking about Natural gas and maybe a year before this administration put in clean air controls that will make any new power plant built in the US use either Nuclear or Nat. Gas, clean coal is out.

So with all of the hoopla, including a good portion of the State of the Union even talking about Nat Gas, I'd think there may be some late-comers who want in on the ride UNG's huge base is setting up.

Here are the charts and a few insights.

 First of all, we've talked about or lamented the death of gaps since HFTs entered the market, even this small gap in yellow was filled today. Looking at the daily chart, the volume is there, we only need a little longer lower wick/higher close for a high probability reversal candle called a "Hammer".

 This is a daily 3C chart, it's a different color because it's a new version that I'm not sharing yet until I have a good feel for it, but if adds a few things to the code, 2 of which are conditions that the accumulation/distribution be between 30 and 50% more than the average, basically it's a nuclear tipped version of the indicator, not subtle at all, a Whack-a-Mole. The head fake we confirmed is clear at the negative divergence, the current positive divergence is leading positive.

 Volume is up today and it doesn't appear to be selling at all, we are getting that nice smile in the intraday price trend as well.

 Just like the last 3 sell-ofs on draws on the EIA report, the day before showed a negative divergence meaning I don't think they care what the EIA says, they will act like it's bad news, bring prices down so they can be accumulated on the cheap and make institutional clients happy. Why a negative divergence setting up the next day down all 3 weeks in a row?

 Here it is again yesterday with a leading positive 3 min today, EXACTLY what I wanted to see.

Here are the two head fake moves with 3C negative divergences on the attempted breakouts, PERFECT HEAD FAKE MOVES THAT SERVED THEIR PURPOSE. So the daily positive divergence in the normal 3C version which is also leading is enough for me, I'm a long term fan of UNG and I feel this is a good place to take a little extra risk on the position.